Millimeter Wave Spectrum for 5G could account for 25% of 5G’s value, GSMA

The use of millimeter wave spectrum for 5G will support an $565
billion increase in global gross domestic product by 2034 and $152
billion in tax revenue, accounting for 25% of the total value generated
by 5G networks, according to a new GSMA report.

While other reports have looked at the overall value that 5G is
expected to bring to global gross domestic product or specific
countries, the GSMA’s report is an attempt to quantify the value that
mmWave spectrum, specifically, brings to the 5G table. It looks at the
time period from 2020 to 2034.

“5G’s full socio-economic impact is dependent on access to a variety
of spectrum resources, including millimeter wave bands between 24 GHz
and 86 GHz,” according to the report, which was written for the GSMA by
TMG. “The mmWave spectrum allows for the increases in bandwidth and
capacity that numerous 5G applications require. It will play a key role
in meeting the demand for many enhanced mobile data services as well as
new wireless broadband use cases.”

In a blog entry on the topic, the GSMA said that “none of these use cases will reach their full potential without access to this spectrum,” and that countries risk losing out on that 25% of value if access to mmWave is stymied.

“The availability of millimeter wave spectrum is dependent on what
happens at the World Radiocommunication Conference in 2019. Government
backing for the mobile industry is needed during the whole process. The
GSMA recommends supporting the 26 GHz, 40 GHz and 66-71 GHz for mobile,”
the industry organization said.

The TMG report broke down the estimated GDP value of a number of 5G
use cases. By 2034, 23% percent of the $565 billion in value generated
by 5G is expected to come from industrial automation; 18% from remote
manipulation of objects; 16% from virtual reality and meetings; and 15%
from high-speed broadband in the home and office.

On a per-sector basis, the report says that by 2034, 38% of the value
of mmWave 5G will be generated by the manufacturing and utilities
sector, with another 25% coming from the financial and professional
services sector. The use cases that will most benefit from mmWave, the
report notes, “generally require a large amount of data throughput in a
small coverage area or face scarcity of spectrum in lower frequency
bands.”

Among the report’s other findings:

-Total tax revenue generated by 5G will be around $588 billion by
2034, TMG estimates, with $152 billion coming from mmWave spectrum. The
GSMA said that this does not include spectrum fees and payments.

-The two regions expected to make the generate the greatest share of
mmWave’s value contribution are Asia-Pacific with $212 billion and the
Americas with $190 billion.

– Over the forecast period, Europe has the highest percentage of GDP growth attributable to mmWave 5G, a rate of 2.9%.

-Late adopters are likely to see faster growth rates once 5G comes
their way. The report said that “once 5G has taken hold in regions such
as sub-Saharan Africa, the annual gain from mmWave 5G will grow much
faster from 2026 onwards, closing the gap between the early and late
adopters.”

James Barnley

I’m the editor of the DomainingAfrica. I write about internet and social media, focusing mainly on Domains. As a subscriber to my newsletter, you’ll get a lot of information on Domain Issues, ICANN, new gtld’s, Mobile technology and social media.